Finance
A Kentucky buyer uses a bridge loan to purchase a new home before selling their existing home. A bridge loan is characterized by:
ALong-term financing at fixed low rates
BShort-term financing using the existing home's equity as collateral✓ Correct
CFHA-insured financing for first-time buyers
DSeller financing with deferred payments
Explanation
A bridge loan (swing loan) is short-term financing that uses the existing home's equity to provide funds for a down payment or purchase of a new home. The loan is repaid when the existing home sells.
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